This resulted in the largest gain in over two months for the foreign reserves, which saw an increase of $4.04 billion from the previous week and end a two-week losing run.
According to information released by the Reserve Bank of India (RBI) on Friday, September 8, India's foreign exchange reserves increased by $4.039 billion to $598.897 billion for the week that ended September 1. The increase of $4.04 billion from the previous week ended a two-week losing skid for the foreign reserves and was the largest gain in nearly two months.
The total reserves decreased by $30 million to $594.858 billion during the previous reporting week. The nation's currency reserves reached an all-time high of $645 billion in October 2021, which is noteworthy.
The reserves suffered as the central bank used its available funds to defend the rupee from pressures brought on mostly by global events that have occurred since last year. According to the RBI's Weekly Statistical Supplement, which was published for the week ending September 1, the foreign currency assets, a significant part of the reserves, climbed by $3.442 billion to $530.691 billion.
The value of non-US currencies like the euro, pound, and yen held in foreign exchange reserves is reflected in the foreign currency assets, which are expressed in dollar terms.
The central bank's statistics shows that gold reserves increased by $584 million to $44.939 billion. According to information provided by the RBI, the Special Drawing Rights (SDRs) increased by $1 million to $18.195 billion.
The results show that the nation's reserve position with the IMF increased by $12 million to $5.073 billion in the reporting week.
To stop the rupee from making wild swings, the central bank makes interventions in the spot and forwards markets. The impacts of the appreciation or depreciation of other currencies held in the reserves of the RBI are reflected in the changes in foreign currency assets, represented in dollar terms.
The rupee decreased somewhat versus the dollar during the week to which the data on foreign exchange reserves applies, trading in a range from 82.5225 to 82.8075. The rupee fell 0.4% this week and finished the week at 82.9450.
The rupee was under pressure all throughout the week due to rising crude oil prices, higher US Treasury yields, and strength in the dollar index, although modest weakness on Friday provided some relief. Anindya Banerjee, head of FX research at Kotak Securities, claimed that the rupee's lower limit in the near future appears to be 83.30.
According to news agency Reuters, the US dollar was on track to achieve its longest weekly winning streak in nine years on Friday thanks to a strong run of US economic data that has raised doubts about the end of the Federal Reserve's aggressive rate-increase cycle.
The US dollar index, which compares the dollar to key counterparts, was last 0.5% lower at 105 but was still relatively close to the session's six-month high of 105.15. The index was on track to extend its gains into an eighth straight week and was up 0.7% so far.
Post a Comment